The Omie Index of Economic Performance of SMEs (IODE-SMEs) shows a 1% increase in the financial movement of small and medium-sized enterprises (SMEs) in Brazil in August 2024, in comparison to the same month of the previous year. In the year-to-date, the sector shows an expansion of 4,9% compared to the same period in 2023
Figure 1: IODE-SMEs
(Index number – base: average 2021=100
Sources: IODE-PMEs (Omie)
The IODE-PMEs functions as an economic thermometer for companies with annual revenues of up to R$50 million, divided into 701 economic activities that make up four major sectors: Trade, Industry, Infrastructure and Services
Felipe Beraldi, economist and manager of Indicators and Economic Studies at Omie, cloud-based management platform (ERP), explain that the development of SMEs in August 2024 was heterogeneous, with a focus on Trade, that led the expansion (+8,4%), after having already advanced 19% in the previous month. "Positive signs persist in the country's economy", how the solidity of the labor market and the increase in the average real income of families, that have kept consumption at high levels, driving the performance of SMEs in this sector, comment
Furthermore, the number is explained by the weak comparison base of the second half of 2023 (-11,2%). The evolution has been observed both in wholesale (+22%), how much in retail (+7%), what reinforces the positive turnaround of the sector in recent months and raises expectations for Black Friday, important seasonal date for sales in the second half of the year
As for industrial SMEs, fell by 3% in August. It is important to emphasize that the movement can be an isolated point, since the industry benchmark is considerably high. In the same period last year, the growth was 25,6%”, ponder Beraldi. In any case, in August, there was positive performance in the activities of 'Printing and reproduction of recordings', 'Furniture manufacturing' and 'Manufacturing of electrical machines and appliances' – that restricted more abrupt drops in the segment
In the Services sector, SMEs also recorded a slight contraction, -1,3% compared to the same period of the previous year, after a robust performance in July (+6,2%). During this period, the performance of the sector was uneven across different categories, with evolution especially in 'Administrative Activities' and 'Delivery Activities'
Finally, the SMEs in the Infrastructure sector maintained real financial movement stable (+8,6%), after having advanced in the previous month with a focus on the 'Collection' segment, waste treatment and disposal
Despite the more contained result in the month, according to the economist, it is still early to point out a possible trend reversal in the economic activity of Brazilian SMEs. "It is a fact that the market expects some slowdown in the economy in the second half of the year". But, the strong performance of the domestic economy recorded in the second quarter (growth of 3,3% in the annual comparison) and the maintenance of a heated job market are important signs that SMEs can maintain robust growth in the short term, foresees
